Q116
Shareholder wealth in a firm is represented by___________.
A.
the number of people employed in the firm
B.
the book value of the firm's assets less the book value of its liabilities
C.
the amount of salary paid to its employees
D.
the market price per share of the firms common stock
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Shareholder wealth in a firm is represented by the market price per share of the firms common stock. Shareholder wealth is defined as the present value of the expected future returns to the owners (that is, shareholders) of the firm.